ABSTRACT
This study examined the relationship between Nigeria foreign debt and economic growth from 1985 – 2013. The objective is to investigate the relationship between Nigerian foreign debt owe to the various club of creditors and the economic growth. Time series data were sourced from the publications of Central Bank of Nigeria (CBN). Real Gross Domestic Product (RGDP) was modeled as the function of foreign debt owes to Paris Club (FDPC), Foreign Debt owes to London Club (FDLC) and foreign debt owe to multi-lateral club (FDMC). Multiple regressions with the aid of econometric view were used as data analysis techniques. Findings of the study reveal that the independent variables examined have positive effect on Nigerian economic growth. The study concludes that there is positive and significant relationship between Nigeria foreign debt and economic growth. It therefore recommends that foreign debt policies should be integrated with macroeconomic goals to achieve the desired economic growth.
Economic development and growth are two concept used to measure and compare economic wellbeing of a country. While the former is defined as a discontinuous and spontaneous change in the stationary state which forever altered and displaces equilibrium state previously existing, the later is defined as the gradual and steady change in long-run growth which comes about by an annual increase in the rate of savings and population Jihgan (2005). Theories of development and growth assumed that availability of capital will bridge the financial disequilibrium in the system and create avenue for investment in technology and Human capital development which is a prerequisite to economic growth and development.
Audu (2004) noted that foreign debt if properly utilized can increase the productive capacity of the economy, fill the savings-investment gap, create employment and exploit economic potentials of a nation. Nigerian foreign debt comprises Nigerian debt with the multilateral club, Paris club, London club, promissory notes and others Onoh (2007). In 1980 Nigerian multilateral club debt was N179.60billions with a steady increase of 8.11% average to N723, 190.26billions in 2011. Nigerian foreign debt to the Paris club was N1, 575.50billions as at 1980 and in 2011 due to the debt forgiveness Nigeria has no debt with the Paris club. The total Nigerian foreign debt as at 1980 was N1, 866.80billions and N896, 832.62billions in 2011 representing an average increase of 3.68%.
Economies facing debt crisis have to face many factors which are the challenges. The investment and growth are depressed in cause of debt accumulation (Choong et al, 2010). Due to high debt an economy by increasing uncertainty due to Debt accumulation various economic troubles have arise like overhang(Jayaraman & Evan Lau, 2008). As the size of the public debt increases, the slow economic growth, soaring fiscal scarcity, and uncertainty about government’s actions and policies in depreciation of exchange rate continuously, growing Order to meet its debt servicing obligations also foreign debt servicing and many others (Osinubi et al, 2006). ............... FOR ACCESS TO THE FULL PROJECT WORK, USE THE ORDER NOW! BUTTON BELOW
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background of Study 1
1.2 Statement of Problem 4
1.3 Purpose of the Study 5
1.4 Research Questions 5
1.5 RESEARCH HYPOTHESES 6
1.6 Significance of Study 6
1.7 SCOPE OF STUDY 7
1.8 LIMITATIONS OF STUDY 8
1.9 DEFINITION OF TERMS 8
1.10 ORGANIZATION OF STUDY 9
REFERENCES 10
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 The Genesis of Nigeria’s Foreign Debts 12
2.2 Debt Burden Indicators 14
2.3 Causes of Foreign Debt Problems in Nig. 17
2.4 Types of Foreign Debt 20
2.5 Sources of Nigerian Foreign Debt 22
2.6 Nigerian Foreign Debt Management 23
2.7 THEORIES OF ECONOMIC GROWTH 28
2.8 Review of Empirical Studies 32
REFERENCES 42
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction 45
3.2 Research Design 45
3.3 Sources and Types of Data 45
3.4 Model Specification for the Study 45
3.5 Data Analysis Method 46
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1 INTRODUCTION 49
4.2 DATA PRESENTATION 49
4.3 DESCRIPTIVE ANALYSIS OF THE VARIABLES 50
4.4 REGRESSION RESULTS 51
4.4 PRESENTATION OE REGRESSION RESULTS 53
4.5 TEST OF HYPOTHESES 54
4.6 DISCUSSION OF FINDINGS 57
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 INTRODUCTION
5.1 SUMMARY OF FINDINGS 60
5.2 CONCLUSION 60
5.3 RECOMMENDATIONS 60
REFERENCE 62
APPENDICES 69
INTRODUCTION
.............. Nigeria like other countries faced financial challenges in her economic operations which resulted in borrowing the deficit proportions outside the country’s financial boundary. Public debt is an important means of bridging Government financing gap especially for low-income Countries like Nigeria. This is termed foreign borrowing and foreign debt which is a component of public fund. It comprises borrowing from foreign lenders such as banking institutions, government and international financial institutions (Ezirim, 2005). Nigerian foreign debt profile include trade arrears, balance of payment, support loans, project tied loans and loans for Socio- economic needs (Ogunmuyiwa, 2011).Economic development and growth are two concept used to measure and compare economic wellbeing of a country. While the former is defined as a discontinuous and spontaneous change in the stationary state which forever altered and displaces equilibrium state previously existing, the later is defined as the gradual and steady change in long-run growth which comes about by an annual increase in the rate of savings and population Jihgan (2005). Theories of development and growth assumed that availability of capital will bridge the financial disequilibrium in the system and create avenue for investment in technology and Human capital development which is a prerequisite to economic growth and development.
Audu (2004) noted that foreign debt if properly utilized can increase the productive capacity of the economy, fill the savings-investment gap, create employment and exploit economic potentials of a nation. Nigerian foreign debt comprises Nigerian debt with the multilateral club, Paris club, London club, promissory notes and others Onoh (2007). In 1980 Nigerian multilateral club debt was N179.60billions with a steady increase of 8.11% average to N723, 190.26billions in 2011. Nigerian foreign debt to the Paris club was N1, 575.50billions as at 1980 and in 2011 due to the debt forgiveness Nigeria has no debt with the Paris club. The total Nigerian foreign debt as at 1980 was N1, 866.80billions and N896, 832.62billions in 2011 representing an average increase of 3.68%.
Economies facing debt crisis have to face many factors which are the challenges. The investment and growth are depressed in cause of debt accumulation (Choong et al, 2010). Due to high debt an economy by increasing uncertainty due to Debt accumulation various economic troubles have arise like overhang(Jayaraman & Evan Lau, 2008). As the size of the public debt increases, the slow economic growth, soaring fiscal scarcity, and uncertainty about government’s actions and policies in depreciation of exchange rate continuously, growing Order to meet its debt servicing obligations also foreign debt servicing and many others (Osinubi et al, 2006). ............... FOR ACCESS TO THE FULL PROJECT WORK, USE THE ORDER NOW! BUTTON BELOW
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background of Study 1
1.2 Statement of Problem 4
1.3 Purpose of the Study 5
1.4 Research Questions 5
1.5 RESEARCH HYPOTHESES 6
1.6 Significance of Study 6
1.7 SCOPE OF STUDY 7
1.8 LIMITATIONS OF STUDY 8
1.9 DEFINITION OF TERMS 8
1.10 ORGANIZATION OF STUDY 9
REFERENCES 10
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 The Genesis of Nigeria’s Foreign Debts 12
2.2 Debt Burden Indicators 14
2.3 Causes of Foreign Debt Problems in Nig. 17
2.4 Types of Foreign Debt 20
2.5 Sources of Nigerian Foreign Debt 22
2.6 Nigerian Foreign Debt Management 23
2.7 THEORIES OF ECONOMIC GROWTH 28
2.8 Review of Empirical Studies 32
REFERENCES 42
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction 45
3.2 Research Design 45
3.3 Sources and Types of Data 45
3.4 Model Specification for the Study 45
3.5 Data Analysis Method 46
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1 INTRODUCTION 49
4.2 DATA PRESENTATION 49
4.3 DESCRIPTIVE ANALYSIS OF THE VARIABLES 50
4.4 REGRESSION RESULTS 51
4.4 PRESENTATION OE REGRESSION RESULTS 53
4.5 TEST OF HYPOTHESES 54
4.6 DISCUSSION OF FINDINGS 57
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 INTRODUCTION
5.1 SUMMARY OF FINDINGS 60
5.2 CONCLUSION 60
5.3 RECOMMENDATIONS 60
REFERENCE 62
APPENDICES 69
Reference code: C063
Reference code: C063
71 Pages
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Reference code: C063
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